This document provides an overview of federalism and intergovernmental relations with a focus on the Ethiopian system. It begins with definitions and principles of federalism, including the need for unity and diversity. It discusses federalism as both a structure and process. It then examines key features of federations like division of powers between levels of government and the role of second chambers. The document analyzes the Ethiopian federal system in depth. It outlines the powers assigned to the federal and state/regional governments under the Ethiopian constitution. It also discusses fiscal federalism issues and concepts as they relate to Ethiopia. Finally, it examines how federalism can accommodate diversity using Ethiopia as a case study. In summary, the document

1. Federalism and
intergovernmental relations
By: Tariku A
Haramaya University
College of Law
July, 2013
1

2. Introduction to Federalism
• The Federal Idea
• Derives from the latin words foedus and fides
• foedus: covenant, contract or bargain
• fides: faith and trust
• Has to do with the need of people and polities
to unite for common purposes yet remain
separate to preserve their respective integrities.
• “Federal principles are concerned with the
combination of self-rule and shared rule.” (
Daniel J. Elazar,1987)
2

3. • Federalism Unity and Diversity
• In Federalism is a mistake to present unity and diversity as
opposites.
• Unity should be contrasted with disunity and diversity with
homogeneity.
• Homogeneity does not always promote unity.
• Federalism VS. Decentralization
• Federalism is not mere decentralisation but a contractual non
centralization.
• Non centralization is not the same as decentralization.
• Decentralization implies:
– Existence of a central authority
– The diffusion of power is actually a matter of grace, not right.
• In a non centralized political system, power is so diffused that
it cannot be legitimately centralized or concentrated without
breaking the structure and spirit of the constitution
3

4. • Federalism as Structure and Process
Earlier Federalism considered as matter of
Structural arrangements
• Assumption: the introduction of a proper
federal structure would create a functioning
federal system.
• Many polities with federal structures were not
truly federal in practice.
• Federalism is as much a matter of process as of
structure.
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5. Federalism ,Federal Political Systems & Federations
• ‘federalism’ is used basically not as a descriptive but as a
normative term and refers to the advocacy of multi-tiered
government combining elements of shared-rule and regional
self-rule.
• It is based on the presumed value and validity of combining
unity and diversity, i.e., of accommodating, preserving and
promoting distinct identities within a larger political union.
• The essence of federalism as a normative principle is the value
of perpetuating both union and non-centralization at the same
time. ( Watts,2008).
• “Federal political systems” and “federations” are used as
descriptive terms applying to particular forms of political
organization.
• “Federal political systems”: refers to a broad category of
political systems in which, by contrast to the single central
source of political and legal authority in unitary systems, there
are two (or more) levels of government thus combining
elements of shared-rule (collaborative partnership) through a
common government and regional self-rule (constituent unit
autonomy) for the governments of the constituent units. 5

6. Definitions of Federations
• “Federations: Compound polities, combining
strong constituent units and a strong general
government, each possessing powers delegated
to it by the people through a constitution, and
each empowered to deal directly with the
citizens in the exercise of its legislative,
administrative and taxing powers, and each
with major institutions directly elected by the
citizens.” ( R. Watts,2008.p.10)
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7. Federations vs. Confederations
• A Confederation : is a union of states in a body politic in
contrast to a federation that is a union of individuals in a
body politic, suggesting the unity of one people or nation.
(Burgess 2004: 30)
• These occur where several pre-existing polities join
together to form a common government for certain limited
purposes :
– (for foreign affairs, defense or economic purposes)
• The common government:
– Is dependent upon the will of the constituent governments,
– Composed of delegates from the constituent governments,
– have only an indirect electoral and fiscal base.
• Historical examples include Switzerland 1291–1798 and
1815–47, and the United States 1781– 89.
• In the contemporary world, the European Union is primarily
a confederation, although it has increasingly incorporated
some features of a federation.
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8. Common Features of Federations
• The generally common structural characteristics of
federations as a specific form of federal political system are
the following:
• 1. at least two orders of government,
– one for the whole federation and the other for the regional
units,
– each acting directly on its citizens;
• 2. A formal constitutional distribution
– of legislative and executive authority
– and allocation of revenue resources between the two orders of
government
– ensuring some areas of genuine autonomy for each order;
• 3. Provision for the designated representation of distinct
regional views
– within the federal policy-making institutions,
– Usually provided by the particular form of the federal second
chamber;
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9. • 4. A supreme written constitution
– not unilaterally amendable and
– requiring the consent for amendments of a significant
proportion of the constituent units;
• 5. An umpire with power to interpret the
constitution
– (in the form of courts, provision for referendums, or an
upper house with special powers);
– To deal with Constitutional disputes on power
• 6. Processes and institutions to facilitate
intergovernmental collaboration
– For policy coordination
– In those areas where governmental responsibilities are
shared or inevitably overlap.
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10. Virtues of Federalism
• 1. Efficient and effective solutions because of
closeness to the problems;
– Subsidarity principle
– Ensuring Policy Responsiveness
• 2. Additional level of "checks and balances":
– Dispersal of Power
– The prevention of tyranny
• 3.More political participation through local
democracy
– Multiple levels of Voting and Representation
• 4. Protection of minorities and their
representation on federal level
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11. • 5. Greater Economy of scales
–Big internal Market
–Big Resource and Population base
• 6. Security from foreign aggression
• 7. creative competition for best practices
–between federal and regional level and
–between regional entities (laboratory
federalism)
–Policy Diversity
• 8. sub-societies can be integrated into the
system without loosing their identity (unity in
diversity) Conflict management
11

12. THE CRITIQUE OF FEDERALISM
• Complex, slow to change,
• Tolerates uneven development and regional
inequality,
• Duplicates functions and services
• The allocation of responsibilities and resources to
two orders of government is difficult
• Thought to be an expensive system of government
• ‘Minorities within minorities’ problem
• Unstable: A halfway house en route to secession
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13. Contemporary Relevance of Federalism
• Is Federalism an obsolete 19th c Form of Government?
• Far from being an obsolete form of government in the
contemporary world
• In fact it is concept of the nation-state that more and more
people have been coming to regard as obsolete
• we appear to be moving from a world of sovereign nation-
states to a world of diminished state sovereignty and
increased interstate linkages of a constitutionally federal
character.
• At present, among the 192 States recognized by UN,
• 28 that are functioning federations in their character
• Contain:
– About two billion people,
– 40% of the world population, and
• Encompass
• Some 510 constituent or federated units
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14. Reasons for the contemporary Increased interest & Relevance
First, Pressures at one and the same time for larger political
organizations and for smaller ones.
• The desires of their people to be both global consumers and local
citizens at the same time,i.e trend of “glocalization.”
• Second, Federations as “the world’s most liveable countries.” by
UN Standard.
– The consistent placing of 8 federations within the top 21 of the some 174
in the annual U N ranking in terms of economic welfare, respect for rights
and quality of life.
– Indeed in 2006, Australia ranked third,Canada sixth, USA eighth,
Switzerland ninth, Belgium thirteenth, Austria fourteenth, Spain
nineteenth and Germany twenty-first.
• Third, the flexibility of the federal idea allowing various forms of
state organisation to meet the interest of the people.
• Application of the federal idea has taken a great variety of forms.
• The degrees of centralization or decentralization differ across
federations is different from country to country
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15. Federations and Second Chambers
• Second chambers are more common, if not inherent in
federations.
• A second chamber is based on a different rationale and
composition than the lower house.
• Rationale for Second Chambers
• A. To Represent the interests of states (groups) at
federal level.
• In federations the federal legislature should represent
both the unity and the regional diversity.
• While the lower house represent the whole people as
individuals( Unity), the second chamber represent
them as groups,( regional diversity).
• Second chambers are expression of shared rule in
federations.
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16. • B. To act as counter majoritarian system.
• The lower house is often uniformly organized on
the principle of proportional representation.
• There is a less strong federal element in the lower
house.
• It is organized and operates on the majoritarian
democratic principle.
• Second chamber represents the federal principle as
distinct from the democratic principle.
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17. The Ethiopian System
• The FDRE Constitution provides for two federal
houses. The HoPR and the HoF.
• It fulfils the minimum requirement of having a
second chamber as all other federations but with
a totally different function.
• It differs from other federations in terms of:
– Ensuring regional participation in federal law making
– Acting as a counter majoritarian institution.
• This is because of:
– The limited role it has in federal law making
– The mechanism of its composition
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18. Composition of Second Chambers
• Second chambers are based on a different organizing principle
from the lower house.
• Variations exist in the composition of second chambers.
• Some organize on the basis of equality of territory without
regard to population weight.E.g. USA, Switzerland.
• Others use proportionality principle based on population weight.
Eg.Ethiopia
• Others balance the principle of territoriality and citizen equality.
Eg.Germany,
• Selection of Members
• Variations exist among the federations in the manner in which
the members of the upper house are brought to office.
• Direct election by the people.
• Indirect election by the state councils
• Sending of delegates from state governments
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19. • Limited Role of HoF in Law Making
• The 1995 Ethiopian Constitution stands in sharp contrast to
other federations.
• The role of HoF in law making is very limited.
• Under Article 55(2), the HoPR remains the sole and highest law-
making authority of the federal government.
• Article 55(1) makes clear that the HoPR exercises exclusively the
legislative functions assigned to the federal government.
• Problems in acting as counter majoritarian system
• There is no mechanism for the smaller states to check the
decisions of the HoPR.
• Danger of the center being hijacked by a few more populous
ethnic groups which may affect the aim of nation building.
• For instance, the combined vote of the Oromos and the Amharas
would more than suffice for most of the business of the HoPR.
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20. Chapter two
Division of Powers
in Federations
20

21. Two Models of Division of Powers
• There are two broadly different approaches to
distributing powers within federations:
– the dualist and integrated models.
• Many countries have elements of both.
• The dualist model typically assigns different
jurisdictions to each order of government, which
then delivers and administers its own programs.
• The integrated model provides for many shared
competences and the Regional governments
often administer centrally legislated programs or
laws.
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22. Types of Powers
Five Categories of Powers
1. Exclusive Powers
2. Residual Powers
3. Concurrent Powers
4. Framework Powers
5. Implied Powers
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23. Main Contents of Federal Powers
1.Powers necessary for the continued unified existence of
the federation and hence inherently federal by their
nature.
– E.g. National defense, international or foreign
relations, citizenship, immigration and naturalization,
and other powers inherently intrinsic to these powers.
2. commercial powers that are essential for facilitating local
as well as international trade.
– E.g. interstate commerce, postal and
telecommunication services, weight and measures,
domestic currency coinage and foreign currency
usage, and banking, insurance, patents and copyright.
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24. Main Contents of Federal Powers
3. Powers that enables central government to implement
powers mentioned in the first and the second category.
– E.g. powers over rail, air, water and road adjoining
two or more states transports
4. Powers dealing with various protection of various social
and political issues.
– E.g. legislations concerning electoral laws, criminal
laws and procedures as well as enforcement of laws of
political rights such as press, demonstration and
registration of political parties
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25. Main Contents of state Powers
1.Powers dealing with public services
– E.g. Primary/Secondary education, Health care,
Municipal affairs,
2.Powers dealing with local security and justice
– E.g. Police, courts etc
3.Powers relating to preservation of diversity
– E.g. Cultural, linguistic issues
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26. Division of Power under the FDRE
Federal Powers
• Under the FDRE constitution, Art. 51 the
federal government is assigned the
responsibility on:
• National defense, foreign relations, monetary
policies, foreign investment and the
establishment and implementation of national
standards on health, education, science and
technology.
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27. Division of Powers under FDRE
State Powers
• The nine regional states have equal powers and duties.
• Under Art.52 The Regional states are empowered to:
• Establish their own administration with responsibility for
the state’s civil service, law and order and the state
police force.
• Regional states formulate and execute Regional State
laws, economic, social, and developmental policies and
strategies as well as administer their own budgets.
• Above all, Regional States are empowered to adopt and
implement their regional constitution.
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28. Division of Powers under FDRE
Concurrent Powers in Ethiopia
• E.g. Art.98 Concurrent Power of taxation, and on Civil
and Criminal laws
Framework Powers in Ethiopia
• Federal government setting standards and principles
but implementation left to regions.
• Education, Public health, rural land administration,
preservation of culture and history.
• Social, economic & development strategies.
Implied Powers in Ethiopia
• No clear indication but as some federal powers are
broadly designed, there is probability of implied
powers in the future.
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29. Division of executive Power in Ethiopia
• In Ethiopia, each government has the power of legislation and
execution on matters that fall under its respective jurisdiction.
• Federal laws are, therefore, implemented through the federal
executive unless otherwise provided by the Constitution.
• There are cases where the Constitution permits the central
government to reserve legislative power for itself and to leave
its administration to the states.
• E.g. When the federal government delegates its powers and
functions to be administered by the states, as prescribed in
Article 50 (9).
• E.g. When the federal government enacts law for the utilization
and conservation of land and other natural resources, historical
sites and objects, but its administration is reserved for the
states.
• E.g. The power to establish national standards concerning public
health, education, science and technology is reserved for the
centre though the provision of these services is left to the states
(Article 51 (3)).
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30. Important Concepts of Fiscal Federalism
The major issues of fiscal federalism are summarized as:
1. Allocation of expenditure responsibilities, which deals with the
issue of which item of power of spending should be carried by
which level of government;
2. Allocation of revenue raising power; which deals with the issue of
which types of taxes should be levied and non tax revenues should
be assumed in which jurisdiction by which level of governments;
3. Fiscal imbalance, deals with the fiscal mismatch between the
expenditure responsibility and revenue sources . The imbalance
between the tires of government and disparities between them in
executing their respective responsibilities; vertical and horizontal
imbalances; and
4. The intergovernmental financial transfer; which deals with the
issue of financial flows between the federal and the states and
among the states; vertical transfer and horizontal transfer in order
to adjust the imbalance and keep a viable federal system.
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31. Chapter three
Federalism and
Accommodation of Diversity:
The Ethiopian Experience
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32. Federal Features
1.Two or more orders of governments
• The federal republic comprises of the federal government and the
state members. ( Art.50(1).
• The state and the federal governments shall not interfere in each
others powers.(Art.50(8).
2. Constitutional division of Powers
• Art 50(2) states that the federal government and the regional states shall have
legislative, executive and judicial powers.
• The federal government has enumerated and limited powers and the states
hold residual powers. By virtue of the reserve clause, any power not
mentioned in Article 51 belongs to the states.
• However, the Constitution gives other powers to the federal government,
powers which are not mentioned in Article 51 but which are distributed
throughout the text. E.g. Under Art 55, labour law, criminal law etc...
• Therefore, the reserve powers of the states only apply after discounting all the
powers of the federal government, which are enumerated throughout the text
of the Constitution, and not just in Article 51.

33. Con’t
3. Supreme, Rigid Constitution
• The constitution declares its supremacy and it cannot be
amended by order of government unilaterally. ( Art.9(1)).
• Amendment of the constitution require consent of both
the federal and regional states.(Art. 104 & 105).
4. An Umpire to deal with Constitutional Disputes
• The constitution authorises the non legislative house
with authority to interpret the constitution and deal with
constitutional disputes. (Art. 62(1)).
• 5.Mechanism for representation of the states in the
federal policy making organ?
• 6. Inter governmental Relations?

34. Language Policy
• The 1995 Federal Constitution attempts to balance the
interest of maintaining national unity on the one hand and
the ethno-linguistic groups demand for cultural
preservation and distinctiveness on the other.
• It declares under Art 5(2) Amharic as the working language
of the Federal Government but does not spell the official
language for communication between the federal
government and the states although as a matter of
practice, Amharic remains to be so.
• The present Constitution under Art 5(3) entitles member
states to determine by law their respective working
languages. This opens the way for the states to adopt their
own working languages from among the local languages.

35. Unique Features of the Ethiopian
Federal System
• Even though the Ethiopian federal system shares some similar
features with other federations it has also got some unique
features that sets it apart from others.
1. Unicameral Legislature
• The 1995 Ethiopian Constitution provides for a two house
federal parliament: the HOPR and the HOF.
• Nevertheless, this is in some sense misleading because the
second/upper chamber (HOF) is not part of the law making
process at federal level. In other words, federal law does not
need the consent of the HOF, to be a law.
• Because of this it fails to give a chance for ethno national groups
participation in federal law making. Fails to act as a counter
majoritarian system.

36. Unique Features
2. Non Judicial Constitutional Interpretation
• The Ethiopian federal system departs from the convention of
constitutional interpretation by the judiciary - Supreme Court or
constitutional Court.
• It grants the HOF among other things with the power to
interpret the Constitution, resolution of disputes among the
regions.
• Particularly the power of interpreting the constitution makes the
HOF of Ethiopia unique.
• Why the HOF and not the Judiciary to interpret the constitution?
• Two reasons: Ideological and historical.
– the constitution is a “political contract among the
nationalities” that should be interpreted by a politically
representative organ.
– Bad reputation of the judiciary as collaborator in violation of
rights in the past regimes.

37. Con’t
3. Secession Clause and Implications
• Another unique feature of the Ethiopian federation is related
to the issue of secession. This is one of the highly contested
provisions of the Constitution.
4. Explicit Recognition of Nations ,Nationalities and Peoples
as Building Block of the Federation and Its Implications
• One feature one notices throughout the Constitution is the
utmost importance given to the ethno-linguistic groups within
the Ethiopian polity.
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38. Limitations of the Federal system
1. Issue of Legitimacy of the Constitution
• The term legitimacy connotes acceptability. It is about popular
recognition and acceptance. It refers to the belief among a large
number of people that the constitutional text needs to be obeyed
by all.
• Two kinds of legitimacy: Original Legitimacy and Derivative
legitimacy.
• Those constitutions that are born in the context of an
overwhelming consensus that engendered the participation of all
sectors of the population, and has as a result developed a content
that is entirely compatible with the socio cultural and political
context might have a strong original legitimacy.
• Constitutions also gain a legitimacy that emerges as their clauses
are implemented to the satisfaction of most of the members of the
polity. This kind of legitimacy is an earned/derivative legitimacy.
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39. Con’t
2.Absence of Federal Supremacy clause
• Unlike other federations that clearly provide for the
paramountcy of the federal laws in case of conflict
between the federal and state laws, there is no such
indication in the Ethiopian system.
3.Failure to Take in to Account Historic Mobility
and Inter Group Relations
• The decision to create a multicultural federation
that assumes the distinct existence of each group
not only creates hard boundaries between them
but also underestimates the existence of a shared
history among the groups.
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40. Con’t
4.Systemic Problems Related to Management of Conflicts
• One can classify conflicts in Ethiopia terming them pre federal and
post federal conflicts.
• In pre federal Ethiopia for the large part of the 20th century, two
main issues are visible in the political conflicts. These are the issue
of class and ethnicity.
• The federal system while dealing with old conflicts on one hand it
also gave birth to new types of conflicts, the post federal conflicts.
• The constitution has envisaged for the establishment of some
institutions like the House of federation and provided for some
mechanisms to deal with some of the conflicts.
• However, this system is said to be inadequate to deal with the
complex nature of conflicts and their management.
• Currently it is being overshadowed by Ministry of Federal Affairs
that has overlapping powers with the house in conflict
management.
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41. • Thank You For You Attention!!
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